Home Buying in New Orleans>Question Details

Kenyacbutler, Home Buyer in Marrero, LA

I am in new Orleans and trying to find financing for a townhouse with a low credit score

Asked by Kenyacbutler, Marrero, LA Wed Jun 19, 2013

I am in new Orleans and I have a credit score under 600, I am in the middle of repairing my credit however I was told that their are lenders who will approve me to receiving funding, however, after weeks of searching, I've found no such thing. I would like to purchase the townhouse because it is bank owned and they have dropped the price tremendously. The ban that own the property stated that they only lend funds to customers who score is atleast 620. Does anyone know who I can get to finance this townhouse for me?

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Good afternoon Kenyacbutler,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

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1 vote Thank Flag Link Wed Jun 19, 2013
Need to cancel your credit cards, get rid of the shiny objects in your life...shiny cars, etc. and get your credit going forward.

No one will finance and if they do you will be looking at double digit interest rates.
0 votes Thank Flag Link Fri Jul 12, 2013
I can do purchase loans with 640 score.
0 votes Thank Flag Link Mon Jul 1, 2013
Sounds like an opportunity for you to build your credit, and try again in 6 months.
No one will finance this for you. Get rid of debt, pay back whomever you owe for the bad credit.
0 votes Thank Flag Link Sun Jun 23, 2013
I would be careful publishing the fact that you are “repairing” your credit, that usually translates to “I am trying to commit mortgage fraud” and believe it or not the feds can read this web site as easy as the rest of us. I linked you some info on the fraud subject below, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Wed Jun 19, 2013
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